Turning the page on last year’s disappointing financial performance, when revenue nudged up by just 1% and profit per equity partner (PEP) stayed flat, Travers Smith today (29 July) announced record-breaking results for 2023-24.
Revenue passed £200m for the first time, reaching £215m —a nearly 10% increase from last year’s £197.5m.
PEP, meanwhile, climbed 18% to £1.3m – the highest the firm has ever recorded, with profit up 22% to £77m.
Andrew Gillen, the firm’s senior partner discussed the results with Legal Business. ‘The results were in line with the high expectations we set for ourselves, but it’s always satisfying, especially when some areas of our business faced challenging markets,’ he said. ‘Achieving the high expectations we set for ourselves is always rewarding.’
The firm’s growth was broad-based, with strong performances across core sectors including disputes and investigations, corporate, M&A, private equity, and asset management.
Managing Partner Edmund Reed (pictured) said: ‘Our approach is about smart, incremental improvements – making small adjustments to enhance efficiency rather than any major changes.’
In recent years Travers has navigated a series of challenges, including several senior departures, including corporate partner Richard Spedding, who moved to Linklaters in May; Doug Bryden, formerly head of environment, operational regulatory, and co-head of ESG and impact, who joined Freshfields last October; and private equity partners Ian Keefe and George Weavil, who moved to Goodwin in April.
Addressing the departures, Gillen said: ‘Our continued success in private equity and other areas reflects the robustness of our platform. Departures are a natural part of a dynamic market, but they haven’t significantly impacted our operations. Our recent lateral hires underscore the enduring appeal of our firm.’
Travers made several additions over the last year, including strengthening its funds team with the hires of Proskauer Rose lawyer Tosin Adeyeri as a partner last October and Blackstone European legal counsel Joel Grossmark in June. The firm also brought in Watson Farley & Williams partner Ryan Ayrton into its cross-practice infrastructure sector group, in a move announced this month.
The firm also made management changes, with Gillen elected senior partner in November and Heather Gagen, Tim Gilbert, and Susie Daykin taking over as heads of dispute resolution, employment, and pensions respectively. In addition, Travers promoted six new partners and elevated 11 lawyers to senior counsel, while increasing newly qualified salaries by 9% to £120,000 and enhancing trainee packages.
On maintaining competitiveness, Reed said: ‘Our comprehensive approach – combining competitive pay, bonuses, benefits, work quality, culture, and career development – ensures our overall package stands out. Our lower turnover rate compared to the market average and successful lateral partner hires are a testament to our firm’s attractiveness at all levels.’
Notable work for the firm has included advising AlpInvest Partners on its new European semi-liquid, evergreen private markets strategy, guiding Zegona Communications in its €5bn acquisition of Vodafone Spain, and issuing proceedings alleging abuse of dominance against Newcastle United on behalf of Sports Direct.
Reflecting on the past year, Reed said: ‘I’m thrilled to see strong performance across all areas of our business. Even in challenging markets, especially within M&A, we’ve managed to secure impressive mandates despite a tougher economic environment over the past 12 months.’
He concluded: ‘The situation is clearly improving. It feels much more positive now compared to this time last year, and I’m optimistic that the current financial year will continue this upward trend.’
Elsewhere, Stewarts, has also posted a strong set of results showing revenue up 12% to £95.2m. PEP is up by more than 16% to £1.42m, with £1.82m paid to the firm’s highest earner, and just over £753,000 at the bottom of the equity ladder – up from £1.7m and £592,000 respectively.
The performance marks a bounceback after last year’s results saw revenue fall by 25% and profit plummet by 56%.
‘I am pleased to announce a solid set of financial results with growth in both revenue and profit as compared to the prior year’, said managing partner Stuart Dench in a statement.
‘As a disputes-only law firm, our revenue is non-linear, and this represents a good core income performance and is our second highest revenue year. We have made significant investments in cases over the past year including DBA and CFA mandates. We invested in our people, making six lateral hires and promoting six to the partnership.’
Stewarts has long stressed that its disputes-only model means growth will be non-linear, and last year’s decline came off the back of a hugely impressive 2021-22 that saw revenue rise by 43% to more than £114m and profit soar by 93% to hit £58m. The firm’s five-year revenue growth rate now stands at over 38% based on the figures reported in 2019’s LB100 – up two percentage points on its 2018-23 rate of 36%, but still a sight below its 2017-22 rate of 46%.
In conversation with Legal Business, Dench said: ‘We’re pleased with the results because they show the depth and diversity of our income. We’ve continued to invest in a strong portfolio of DBA and CFA cases, which could support very strong financial results in the future.’
‘Our vision is that by 2030 we will be the UK’s leading disputes firm in each of our practice areas.’
He added: ‘We want to add further strength and depth in commerical litigation and international arbitration. We’re also looking at patent disputes, tech disputes, and disputes relating to AI and cyber – the linking theme is disputes in emerging sectors of the economy.’
Another firm to unveil strong results for 2023-24 is Stevens & Bolton, which has posted double-digit increases in revenue, profit, and PEP in its 150th year.
Revenue for the 11 months to 31 March 2024 was £38.8m – up 20% on the same 11-month period 2022-23. Annualised figures showed revenue up 18% to £42.3m, profit up 31% to £16.7m, and PEP up 22% to £360,000, with £750,000 at the top of the equity spread.
‘I am delighted that our results so clearly reflect the confidence placed by our clients in our talented and cohesive group of partners and lawyers’, said managing partner James Waddell in a statement.
Chief operating officer Doug Williams added: ‘While the firm has demonstrated consistent and sustainable performance, we recognise the increasing pace of change in the legal market and shifting needs of both our clients and our people and have evolved our ambition and approach to match.
‘This year’s step-change in performance was supported by an increased focus on business management and is underpinned by investment in our professional non-legal teams and operating platform as we look to push beyond traditional business services.’
The firm has brought its financial year-end forward to align with the UK tax year after HMRC changed its basis period rules to require all self-employed individuals and partnerships be taxed on the basis of the tax year rather than their own financial year-end, joining firms such as Fieldfisher and Macfarlanes that were also affected by the change.
The results come after a rocky 2022-23 that saw revenue dip by 1% while PEP fell by 16% as reported in last year’s LB100.